How to Create and Use an Attrition Model

A continuous threat to the health of any company is the loss of customers.

That makes prospecting efforts all the more important, because newly acquired customers are worth more in the future. Profits rise because repeat sales rise, and most profits come from repeat sales.

Your catalog’s attrition can be mapped using many variables. Recency, or how long ago customers made purchases, is the most common. Total spending, average amount spent, method and type of purchase are common variables used to estimate attrition by customer segments. Demographics and psychographics also may be helpful predictors.